Electricians condemn increase in red tape after Budget announcement

Today, peak Australian electrical industry body, the National Electrical and Communications Association (NECA), condemned initiatives outlined in the 2011 Budget that will cause contractors to be tied up in even more red tape.

It was announced that there will be a new requirement for businesses in the building and construction industry to report to the Australian Taxation Office (ATO) annually on payments made to other contractors in the industry, along with the other contractor's ABN.

NECA chief executive officer, Mr James Tinslay, said this new requirement will unnecessarily place administrative burdens on the electrical industry.

“NECA represents over 5000 electrical contracting businesses in Australia and this new requirement announced in the Budget appears to be an unnecessary burden on many Australian employers,” Mr Tinslay said.

“Electrical contractors already have massive reporting requirements for taxation and electrical safety purposes without this new process.

“The Government should be focused on cutting red tape to assist business owners increase productivity and not on introducing initiatives that will force many electrical contractors to spend more time on reporting.”

The Government is now expecting contractors to report payments made to other contractors and this is a concern to the electrical industry.

The requirement for contractors to report every cent they pay to other contractors would appear to be over the top and unnecessary.

“The electrical industry is already very competitive and this reporting regime needs further explaining from the Government,” Mr Tinslay said.

“NECA calls on the Government to consult with industry before placing further administrative burdens on electrical contractors.”